Cabinet approves PAN 2.0: All you need to know
Mangalore Today News Network
New Delhi, November 26, 2024: The Union Cabinet has greenlit the PAN 2.0 Project, a significant upgrade to the existing Permanent Account Number (PAN) system, aiming to improve taxpayer services and streamline business operations.
What is PAN 2.0?
PAN 2.0 is an advanced version of the current PAN system, using technology to make registration easier and more accessible for taxpayers. The project, with a budget of ₹ 1,435 crore, will revamp the digital infrastructure of the Income Tax Department to provide a seamless experience for individuals and businesses.
Features of PAN 2.0
1. PAN cards will now feature an embedded QR code for enhanced functionality and security.
2. PAN will be a universal identifier for businesses across specified government digital systems.
3. The project will re-engineer taxpayer registration processes and consolidate PAN/TAN services into a unified platform.
4. The project focuses on being eco-friendly, cost-efficient, secure, and fast.
Benefits for users
1. Taxpayer registration services will become faster and more user-friendly.
2. Existing PAN holders can upgrade to PAN 2.0 at no additional cost.
3. A unified system will improve service delivery and ensure data consistency.
Do I need to apply for a new PAN card?
No, you need not apply for a new PAN card. Under the PAN 2.0 initiative, your existing PAN card will remain valid, and the upgrades, including the QR code feature, will be made available without any action from current cardholders.
Significance for businesses
By making PAN a common identifier, the project aligns with the government’s Digital India vision. Businesses can leverage this universal identifier to streamline interactions with government agencies, ensuring smoother compliance and operations.
Scope
So far, 78 crore PAN cards have been issued, with 98 per cent belonging to individuals. PAN 2.0 will consolidate the existing ecosystem and introduce efficient, eco-friendly processes for all users.